Medartis Holding AG

Medartis reported H1 2026 group revenue of CHF 160.8 million, up 30.7%, including CHF 24.3 million of contributions from NeoOrtho and Keri Medical. Core sales were about CHF 160 million, up CHF 38 million in Swiss francs, with organic growth of 17% and a slight FX headwind of almost CHF 4 million. Core gross margin was 81.5%, with absolute gross profit of CHF 130 million, and core EBITDA was CHF 28.8 million, implying an EBITDA margin of 18%. Core net profit rose to roughly CHF 7 million versus a net loss of CHF 400,000 last year. Management raised full-year 2026 guidance to 17% to 19% core sales growth and said core EBITDA margin should remain in the high teens. They also lifted U.S. TOUCH volume guidance to 1,800 cases from 1,200, which Peter Hackel said contributes an additional CHF 3 million to top line. Free cash flow was negative CHF 10 million in H1, after almost CHF 18 million of CapEx, and the cash balance ended at CHF 26 million. Peter said total CapEx for the year should be about CHF 35 million, with free cash flow expected to improve significantly in 2027 and especially 2028.

Matthias Schupp framed the first half as proof that Medartis is delivering on both top-line growth and profitability, repeatedly emphasizing that the company is “on track” and that the culture is translating into results. He highlighted strong execution across the U.S., Europe, Latin America, and APAC, plus progress on Keri Medical integration, NeoOrtho’s new Curitiba facility, and the global TOUCH rollout. His tone was confident and upbeat, but he also stressed that several initiatives are still in ramp-up phases and that the company is building for the next several years, not just the current quarter.

Peter Hackel quantified the main financial drivers: CHF 4.4 million of tariff refunds recognized in the P&L, CHF 800,000 of U.S. tariff expense in core results, and a CHF 1.9 million litigation charge in noncore results. He said gross margin improved by 140 basis points at constant FX, helped by mix, plant efficiencies, and Keri consolidation, offset partly by a 60 basis point tariff drag. He also detailed the cash profile, noting nearly CHF 18 million of CapEx in H1, around CHF 10 million of which was extraordinary investment into machines and facilities, and said the company expects roughly CHF 35 million of CapEx for the full year. He expects the tax rate to remain around 12% going forward and expects local U.S. production to reach around 70% of U.S. sales by year-end, rising to about 80% in 2027.

Analysts focused on what is driving the raised guidance, especially how much comes from TOUCH versus the underlying business. Management said the increase reflects both stronger TOUCH momentum and a better base business, with Matthias pointing to double-digit growth in the U.S. excluding TOUCH and saying the second half has an easier comparison because of the Florida disruption last year. Questions also probed cross-selling from Keri, where management said it is still early but roughly 20 surgeons are now using Medartis products they had not used before. On LatAm, management said Premium is still growing double-digit, but the region is being reshaped by distributor changes as NeoOrtho ramps and direct-market opportunities in Mexico and Brazil expand. Analysts also asked about TOUCH adoption in Europe, surgeon conversion timing, currency sensitivity, and free cash flow; management said contract timing remains the main friction for surgeon conversion and that cash flow should improve materially in 2027 and 2028.